This is perhaps one of the trickiest comparisons in domaining.

On the one hand, when it comes to domain auctions, you at least *for the most part* know you’re buying something of value. After all, if other people are bidding on a name or even more so, if there’s actually a bidding war, the likelihood that you’re buying junk is reasonably low.

However, there’s a price to pay. With “price” being the operative word.

If you’re involved in a bidding war for a good domain on a good platform, the likelihood of getting a screaming bargain is pretty low. And by “screaming bargain”, I mean a domain that you bought for well below the CURRENT market price. A few years from now, sure, even a domain you over-pay for today might prove to be an amazing buy but that’s not what I’m talking about. I’m simply referring to current market conditions and to domain auctions being vehicles designed to enable buyers/sellers to transact at the current market price. Not grossly below it, not a lot above it.

When it comes to domain acquisition methods such as outreach (contacting domain owners directly), then, of course, the likelihood of buying at a price that’s disconnected from the current market price increases. Keep in mind, this goes both ways. On the one hand, you can negotiate yourself to a far better price, great. On the other hand though, you might have not done your research properly when it comes to the true potential of the domain and, especially if the other party is a savvy negotiator, end up paying more than the domain might have fetched at auction.

At the end of the day, it’s not an either/or situation in my opinion, it all boils down to what works best for you.

If you’re an experienced domainer with enough time on your hands, you can get more bang for your buck via outreach.

If you’re a complete beginner, perhaps it would be wise to buy via auctions until you get the hang of things. At least you’ll save yourself the money you would have wasted hand regging absolute junk, like most of us have done back in the day 🙂

… those would be the two extremes, if you will.

For most people, the best strategy lies somewhere in the middle. Perhaps you’re experienced but very busy. Or you have capital burning a hole in your pocket NOW and want to start investing at least some of it straight away… in such cases and many more, I believe you’ll realize that the two approaches actually complement one another.

Good luck!